Equity funds

What are equity funds?Equity funds invest in the shares of companies. They provide individuals with an opportunity to invest in a diversified portfolio of many individual stocks, which helps to diffuse the risk associated with investing in a small number of individual stocks. By investing in a variety of companies across different sectors and regions, equity funds aim to maximise returns and achieve long-term capital appreciation. Some equity funds invest with the single goal of achieving capital returns, while others will look for companies paying a dividend. The latter tend to be called equity income funds.